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1.
a.
To explain: The classification cost as value added and non value added cost.
b.
To explain: The classification cost as value added and non value added cost.
c.
To explain: The classification cost as value added and non value added cost.
d.
To explain: The classification cost as value added and non value added cost.
e.
To explain: The classification cost as value added and non value added cost.
f.
To explain: The classification cost as value added and non value added cost.
g.
To explain: The classification cost as value added and non value added cost.
2.
To compute: The breakup of value added and non value added.
Given information:
2013,
Cost of material and labor for servicing machine tools is $1,100,000.
Cost of material procurement and inspection cost is $45,000.
Cost of preventive maintenance of equipment is $55,000
Rework cost is $90,000.
Expediting cost caused by work delays is $65,000.
Material handling cost is $80,000.
Breakdown maintenance of equipment is $75,000.
3.
To compute: The amount that is to be reduced after making changes in (a), (b), and (c).
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Chapter 13 Solutions
EBK COST ACCOUNTING
- A company enters into a contract to sell 70 products to a customer for $80 each. After the company transfers 30 of the 70 products, the customer orders an additional 25 products. The contract is modified, and the additional 25 products are priced at $40 each. $40 is not reflective of the product's standalone selling price. What is the price per product for the remaining 65 products (40 products from the original contract and 25 products from the modification)? A. $80 for the remaining 40 from the original contract and $40 for the additional 25products from the modification B. $60, the average of the prices for the remaining products C. $40, the new price for the products specified in the contract modification D. $64.62, the blended price for the products from the original contract and the modificationarrow_forwardMonu Enterprises received $9,000 cash from the sale of a machine that had a $13,000 book value. If the company is subject to a 25% income tax rate, the net cash flow to use in a discounted-cash-flow analysis would be_. A. $3,000 B. $6,750 C. $7,750 D. $9,000 E. $10,000arrow_forwardAccountingarrow_forward
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